[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] EXAMINING THE SHIPMENT OF ILLICIT DRUGS IN INTERNATIONAL MAIL ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON GOVERNMENT OPERATIONS OF THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ SEPTEMBER 7, 2017 __________ Serial No. 115-38 __________ Printed for the use of the Committee on Oversight and Government Reform [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.fdsys.gov http://oversight.house.gov __________ U.S. GOVERNMENT PUBLISHING OFFICE 27-742 PDF WASHINGTON : 2018 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. Committee on Oversight and Government Reform Trey Gowdy, South Carolina, Chairman John J. Duncan, Jr., Tennessee Elijah E. Cummings, Maryland, Darrell E. Issa, California Ranking Minority Member Jim Jordan, Ohio Carolyn B. Maloney, New York Mark Sanford, South Carolina Eleanor Holmes Norton, District of Justin Amash, Michigan Columbia Paul A. Gosar, Arizona Wm. Lacy Clay, Missouri Scott DesJarlais, Tennessee Stephen F. Lynch, Massachusetts Trey Gowdy, South Carolina Jim Cooper, Tennessee Blake Farenthold, Texas Gerald E. Connolly, Virginia Virginia Foxx, North Carolina Robin L. Kelly, Illinois Thomas Massie, Kentucky Brenda L. Lawrence, Michigan Mark Meadows, North Carolina Bonnie Watson Coleman, New Jersey Ron DeSantis, Florida Stacey E. Plaskett, Virgin Islands Dennis A. Ross, Florida Val Butler Demings, Florida Mark Walker, North Carolina Raja Krishnamoorthi, Illinois Rod Blum, Iowa Jamie Raskin, Maryland Jody B. Hice, Georgia Peter Welch, Vermont Steve Russell, Oklahoma Matt Cartwright, Pennsylvania Glenn Grothman, Wisconsin Mark DeSaulnier, California Will Hurd, Texas Jimmy Gomez, California Gary J. Palmer, Alabama James Comer, Kentucky Paul Mitchell, Michigan Greg Gianforte, Montana Sheria Clarke, Staff Director Robert Borden, Deputy Staff Director William McKenna General Counsel Mary Doocy, Counsel Kiley Bidelman, Clerk David Rapallo, Minority Staff Director ------ Subcommittee on Government Operations Mark Meadows, North Carolina, Chairman Jody B. Hice, Georgia, Vice Chair Gerald E. Connolly, Virginia, Jim Jordan, Ohio Ranking Minority Member Mark Sanford, South Carolina Carolyn B. Maloney, New York Thomas Massie, Kentucky Eleanor Holmes Norton, District of Ron DeSantis, Florida Columbia Dennis A. Ross, Florida Wm. Lacy Clay, Missouri Rod Blum, Iowa Brenda L. Lawrence, Michigan Bonnie Watson Coleman, New Jersey C O N T E N T S ---------- Page Hearing held on September 7, 2017................................ 1 WITNESSES The Hon. Gregory Thome, Director, Office of U.N. Specialized and Technical Agencies, Bureau of International Organization Affairs, U.S. Department of State Oral Statement............................................... 5 Written Statement............................................ 7 Mr. Guy Cottrell, Chief Postal Inspector, United States Postal Service Oral Statement............................................... 11 Written Statement............................................ 13 Mr. Todd C. Owen, Executive Assistant Commissioner, Office of Field Operations, U.S. Customs and Border Protection Oral Statement............................................... 20 Written Statement............................................ 22 Ms. Lori Rectanus, Director, Physical Infrastructure Issues, U.S. Government Accountability Office Oral Statement............................................... 30 Written Statement............................................ 32 Ms. Tammy Whitcomb, Acting Inspector General, U.S. Postal Service, Office of the Inspector General Oral Statement............................................... 43 Written Statement............................................ 45 EXAMINING THE SHIPMENT OF ILLICIT DRUGS IN INTERNATIONAL MAIL ---------- Thursday, September 7, 2017 House of Representatives, Subcommittee on Government Operations, Committee on Oversight and Government Reform, Washington, D.C. The subcommittee met, pursuant to call, at 3:12 p.m., in Room 2154, Rayburn House Office Building, Hon. Jody Hice presiding. Present: Representatives Hice, Meadows, Jordan, Blum, Connolly, Norton, Clay, and Lawrence. Mr. Hice. The Subcommittee on Government Operations will come to order. Let me first of all just say thank you for your patience, all of you. Sometimes around here we never know when votes are going to occur, and we thought we would be able to start around 2:00, so your patience is greatly appreciated. I am sure we will have some other members show up along the way, but we will go ahead and get started. Without objection, the chair is authorized to declare a recess at any time. Again, I welcome you here today to discuss this very important issue. Last year, 62,000 Americans died from drug overdoses. That is a staggering number. More than died in both Vietnam and Iraq wars combined. The opioid crisis is the deadliest drug epidemic in American history, and it only continues to worsen. In my home State of Georgia, opioids are the main cause of overdose deaths. Almost as many Georgians die annually from drug overdose as do from car accidents. In 2015, 55 of the counties in Georgia out of 159 counties had a higher drug overdose rate than the U.S. average. That is a significant uptick from just 11 years ago when only 26 Georgia counties were higher than the U.S. average. In May, a mass overdose swept through Georgia, took a lot of the hearts and emotions of the people of Georgia. There were four people who died within a 48-hour period of time of taking pills that they thought were Percocet. Tragically, this is only one example of the many incidents that have occurred in recent years due to our country's insatiable desire for drugs. While the United States makes up about 5 percent of the world's population, we consume an overwhelming share of the world's pain medication. With any drug epidemic, supply reduction is an essential element to drug control, be it domestic or international. When it comes to our nation's opioid epidemic, the ability to purchase drugs with just one click of a computer and have those drugs brought to this country is easy for most anyone to accomplish. Americans are now able to easily purchase powerful synthetic opioids, particularly from China, and have them shipped straight to their doorstep here in the United States via the United States Postal Service. Despite the billions of dollars our country spends each year on personnel, technology, and infrastructure to protect our southern borders, the U.S. Postal Service allows international packages to enter our country virtually unchecked. Because the U.S. Postal Service is not required to follow the same customs standards as its private competitors, it has become an attractive courier for international drug traffickers. With the rise of e-commerce, the volume of inbound international mail has exploded to hundreds of millions of pieces each year. This massive volume, coupled with lax security standards, has created a significant security weakness, which often results in a failure to detect drugs shipped through the Postal Service. So, today, we are going to learn about how the U.S. Postal Service's lax security standards have led to an influx of illicit drugs entering our country. We will also explore ways in which the U.S. Postal Service can close that security gap between the mail service and the private competitors. The U.S. Postal Service has already taken steps for which we are grateful, such as increased collection of electronic advanced data to heighten security of inbound international mail. They have also embarked on pilot programs in partnership with CBP to target certain mail for inspection. And while these pilot programs are a step in the right direction, the postal inspector general and GAO have found that there is substantial room for improvement, so we look forward to their testimony here today. We will also hear from CBP and the U.S. Postal Inspection Service about procedures that have been effective in thwarting contraband from entering our country, as well as what procedures could be effective in the future. The majority of illicit synthetic opioids from China enter the United States via the Postal Service under the terms governed by the United Nations' Universal Postal Union Treaty. Today, we will hear from the State Department about international efforts to stop illicit drugs from being sent through the mail. As the number of Americans overdosing and dying from these drugs continues to rise, it is important that we act now, so I look forward to hearing from our witnesses today as we explore how we can work together to stop the supply of illicit drugs entering our country and better fight our nation's drug epidemic. Mr. Hice. When the ranking member arrives, he will be allowed time for his opening statement, but for now, let me introduce our panel of witnesses, after which each of you will have an opportunity to give your opening statement. I am pleased to welcome Mr. Gregory Thome, director of the Office of U.N. Specialized and Technical Agencies at the State Department; Mr. Guy Cottrell, is that correct? Mr. Cottrell. Yes. Mr. Hice. Chief postal inspector for the United States Postal Service; Mr. Todd Owen, executive assistant commissioner at the U.S. Customs and Border Protection agency; Ms. Lori Rectanus, director for Physical Infrastructure Issues that the Government Accountability Office; and Ms. Tammy Whitcomb, acting inspector general for the United States Postal Service. All of you, we welcome you here. And, Mr. Cottrell, I understand that you have someone with you today, is that correct? Mr. Cottrell. Yes, sir. Mr. Hice. Okay. Could you please introduce that person? Mr. Cottrell. Yes. It's Robert Raines. He is a postal operations manager just in case there are any technical operations questions. Mr. Hice. Okay. And where is Robert? Okay, sir. Thank you, and welcome. Pursuant to committee rules, all witnesses will be sworn in before they testify, so if you would please each of you rise and raise your right hand. [Witnesses sworn.] Mr. Hice. The record will reflect that all witnesses have answered in the affirmative. Thank you, you may be seated. Are you ready for your opening statement or do you want to ---- Mr. Connolly. I do. I do. Mr. Hice. Okay. All right. Yes. Mr. Connolly. Thank you. Mr. Hice. All right. We are going to begin with your opening statements in here in just a moment. The ranking member, Mr. Connolly, has arrived, so I will yield to him for his opening statement. Mr. Connolly. Thank you, Mr. Chairman. I am sorry to keep people waiting. We had 10 votes, and I got a little delayed on the Floor. But thank you for having this hearing, and thank you all for being here. Opioid abuse is now one of the biggest public health threats we face as a nation, and that threat is growing exponentially and in a frightening way. According to data released just a few days ago by the National Center of Health Statistics, more than 64,000 Americans died from drug overdoses in 2016. This figure is an increase of more than 20 percent over the previous year. This data shows that synthetic opioids like fentanyl now cause more deaths than any other type of drug. According to the Center for Health Statistics, death from synthetic opioids doubled from 2015 to 2016 to just over 20,000. A New York Times headline this weekend proclaimed that deaths from fentanyl have increased by 540 percent over the last three years alone. In my native State of Virginia, deaths from synthetic opioids rose from 263 in 2015 to 692 one year later. And sadly, Virginia is hardly alone among States in seeing deaths from opioids double or triple in that time period. Commission on Combating Drug Addiction and the Opioid Crisis, headed by Governor Christie of New Jersey, recently warned, and I quote, ``We are miserably losing this fight to prevent fentanyl from entering our country and killing our citizens. The commission emphasized to President Trump that ``The first and most urgent recommendation of the commission is direct and completely within your control, Mr. President. Declare a national emergency.'' President Trump held a news conference in which he said the words the opioid crisis is an emergency, but he hasn't declared it as such, a national emergency. Among many other thoughtful recommendations, the Christie commission urged the government to intercept fentanyl and other synthetic opioids in envelopes and packages at mail processing distribution centers across the country. The Federal agency responsible for preventing fentanyl from coming into this country through international mail and express consignment packages like FedEx and UPS is the Customs and Border Protection agency. CBP is statutorily required, and I quote, ``to ensure the interdiction of persons and goods illegally entering or exiting the United States.'' CBP inspects inbound international mail received by the United States Postal Service. CBP inspects inbound international express commercial packages at express consignment carrier hubs. According to data provided by CBP to our staff prior to this hearing, the greatest increases in the rates of seizure of fentanyl have been in the mail and express consignment packages. Right now, however, CBP does not appear to know if it is using the most effective tools to find fentanyl in international mail and packages. The GAO will warn us today that for one targeting method, the use of advanced data on mail and express shipments, CBP has not done the analysis necessary to evaluate its effectiveness and this targeting method relative to other methods. Troubling is that customs may not be using all available data to target mail for inspection and investigation and may be targeting only a small number of packages per day and may not even be targeting whole classes of mail. In fact, using existing data already collected by the Postal Service, the Postal Service's inspector general recently linked a package intercepted by CBP that contained fentanyl to hundreds of additional packages that likely contained fentanyl but were apparently allowed to enter into the United States. This could point to a potentially much bigger problem wherein CBP is failing systematically to uncover those illicit shipping networks. Given the urgent and growing threat that fentanyl and other synthetic opioids pose to the United States, as well as the recommendation of the Christie commission to increase our ability to detect and interdict drugs inbound and international mail and express consignments using enhanced technology, more manpower, and expanded canine deployment, it is critical that we ascertain which methods of interdicting drugs on inbound mail and consignments are most effective and replicating them. One thing is clear, however, and that is that President Trump's proposed wall won't stop the most dangerous drugs from coming into the United States. Effective targeting methods are what we need and will have to be expanded and enhanced if we are going to win this battle. I know we are going to do it on a bipartisan basis. I look forward to hearing from CBP particularly on how it plans to address current deficiencies in its interdiction efforts and lessons learned and help turn the tide of this incredible public health crisis. Thank you, Mr. Chairman. Mr. Hice. I thank the gentleman. The witnesses have been introduced and sworn in, so we are ready for your opening testimonies. In order to allow time for discussion, please limit your testimony to five minutes. Your entire written testimony and statement will be made part of the record. As a reminder, two things: Press the button for your microphone, and please pull your microphone up so that we can hear you clearly as you are speaking. The clock in front of you will show your time. It will turn yellow about 30 seconds, and red, it is time to land the plane. So we are again glad to have you. And, Mr. Thome, you are recognized for five minutes. WITNESS STATEMENTS STATEMENT OF GREGORY THOME Mr. Thome. Chairman Hice, Ranking Member Connolly, members of the subcommittee, thank you for the invitation to appear before you today to discuss the shipment of illicit drugs in the international mail, as well as the differences between international mail and private express shipments as they relate to abuse of the mail by traffickers. The Department of State take these matters very seriously. And while international mail is only one of the avenues traffickers may try to exploit, we are making concerted efforts in cooperation with the U.S. Postal Service and U.S. CBP to make reforms to the system of global mail exchange that will improve security and support drug interdiction. The Department has statutory responsibility for the formulation, coordination, and oversight of international postal policy. The Universal Postal Union, or UPU is the principal venue where we discharge this responsibility, working closely with both the Postal Service and American express delivery services such as UPS and FedEx. Like our partners, the Department is aware that the exchange of advanced electronic data, or AED, can help mitigate the risk posed by traffickers. However, in considering a policy response that would best serve all stakeholders, it is important to bear in mind the fundamental differences between USPS and private express companies. First, because of U.S. national treaty obligations as a member of the UPU, USPS must receive mail items from 191 foreign postal operators. This means it has limited ability to collect AED or otherwise control the mail items it receives until they are tendered to it in the United States. Private express companies, in contrast, control collection and delivery of the items they transport, as well as the entire logistics chain in between. Second, USPS engages in international mail exchange as the designated operator of the United States, meaning it cannot, except in very rare cases, refuse mail, and it must guarantee delivery to any address in the United States. Private express companies, on the other hand, have no universal service obligation and are free to pick and choose their customers, accepting only the mail they judge to be reliable. Third, there is a wide discrepancy between the ability to collect AED. Express carriers can unilaterally impose data collection requirements on their overseas customers whereas USPS cannot and must instead convince 191 postal services of the benefit and the security that providing AED will offer. While these differences pose challenges, the good news is that postal services worldwide are now eager and determined to collect and exchange AED. Postal operators see that delays caused by customs processing are a major impediment to their ability to grow their business. They know they need to interface more swiftly with mailers and transport companies, and their customers increasingly demand the ability to track packages in real time and to easily exchange merchandise. Use of AED is the only solution to these business challenges. The UPU has become a partner to the United States in championing the increased use of AED both for business and security reasons. In 2012, the U.S. successfully secured amendments to the UPU convention that committed each member to a security strategy that includes complying with requirements for AED. Indeed, the UPUs recently adopted business plan calls for all postal services worldwide to have the capability to exchange data in place by the end of 2020. And we anticipate that the UPU will give final approval for an advanced electronic data messaging standard this October. As significant as these achievements are, there are still obstacles to overcome. The main impediment to widespread exchange of AED is the very limited ability of most countries' postal services to collect and transmit it. Many post offices in the developing world do not have internet or even reliable sources of electricity. This makes collection and transmission of data for postal items extremely difficult. Even in developed countries, most postal services do not yet have the needed infrastructure for item-level data exchange. Indeed, few if any countries now have the capacity to provide it for 100 percent of their mail requiring customs declaration. Nevertheless, the tide has turned. Postal services around the world understand the need to incorporate AED into the fabric of global mail exchange not just because the U.S. and other countries are beginning to require it but because it is essential to their business models. This is why USPS is successfully expanding its network of pilot projects, and this is why we are witnessing a rapid increase in the flow of AED for premium products worldwide. In closing, we are confident that the number of countries able to provide AED and the proportion of their mail streams that it covers will continue to grow. I want to assure the subcommittee that the State Department will spare no effort in working to further accelerate this process. Thank you, Mr. Chairman, and I look forward to answering your questions. [Prepared statement of Mr. Thome follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Hice. Thank you very much. Mr. Cottrell, you are recognized for five minutes. STATEMENT OF GUY COTTRELL Mr. Cottrell. Good afternoon, Chairman Hice, Ranking Member Connolly, and members of the subcommittee. Thank you for calling this hearing on drug trafficking and security standards used by the U.S. Postal Service and private carriers. My name is Guy Cottrell. I'm the chief postal inspector for the United States Postal Inspection Service. In this role, I oversee the law enforcement arm of the Postal Service. Our mission is to support and protect the Postal Service and its employees, infrastructure, and customers. As one of America's oldest Federal law enforcement organizations, the more than 2,700 men and women of the Postal Inspection Service enforce the laws that defend the Nation's mail system from illegal or dangerous use and ensure public trust in the mail. To that end, the investigation of contraband in international mail is among the highest priorities of the Inspection Service, and we play an active role in the national effort to address the problem of fentanyl and synthetic opioid distribution. We work closely with Federal and local law enforcement partners on criminal investigations, information- sharing, and we used data analysis to target inbound international mail. We have continually evolved our methods, expanded resources, and strengthened strategic law enforcement partnerships. As a result, we have seen significant improvements in our ability to seize fentanyl and synthetic opioids from the mail. From fiscal year 2016 through August of fiscal year 2017, we have achieved a 3-1/2-fold increase in international parcel seizures and an eight-fold increase in domestic parcel seizures related to synthetic opioids. As we continue to utilize and develop our available resources to identify illicit drugs located in the United States and take appropriate action, we will continue to enhance investigative techniques and data analytics to better forecast and target incoming parcels in order to seize fentanyl and synthetic opioids sent through the mail. Mr. Chairman, the Postal Service, in collaboration with the State Department and Customs and Border Protection, plays a leadership role in advocating for the global collection and exchange of advanced electronic data, or AED, on international mail. Through negotiation and advocacy and by targeting those countries of interest identified by customs which are known to be sources of illicit opioids, inbound AED has grown rapidly in the past few years. Most international mail currently arrives in the United States at one of five international service centers. The Inspection Service's investigative authority begins once inbound mail is released from the first point of entry by our customs counterparts. While AED is used to strengthen our investigations and identify trends, operation methodologies, and potential suspects, we consider AED only one part of a multilayered approach the Inspection Service takes regarding contraband interdiction. To be successful in thwarting the international drug trade, cooperation and teamwork between law enforcement agencies is critical. Information-sharing is an invaluable asset at the importation and street level and everywhere in between. Utilizing technology, maximizing the effectiveness of operational processes, and infusing this information with real- time intelligence is critical to the efforts of combating fentanyl and synthetic opioid distribution. For those items for which AED is furnished, customs has an enhanced ability to target items for inspection. The Postal Service currently receives data on a substantial amount of inbound shipments, including those originating in China. The percentage of inbound items with AED is expected to continue to grow, especially as we expand partnerships with commercial providers and as more countries develop their capacities. Mr. Chairman, the Postal Inspection Service, working with our law enforcement partners and Postal Service management, is committed to preventing illicit items from entering the Nation alongside legitimate commerce and communication. We stand alongside those agencies that share our mission to combat illegal drugs and contraband. We additionally concur with the recommendations of the Government Accountability Office to further assess the value of AED in support of national investigation and interdiction efforts. The Postal Service and the Postal Inspection Service will continue to take all practicable measures to ensure the security of our nation's mail and provide the American public the best, most efficient service possible. Again, I thank you for this opportunity to testify, and I look forward to your questions. [Prepared statement of Mr. Cottrell follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Hice. I thank the gentleman. Mr. Owen, you are recognized for five minutes. STATEMENT OF TODD C. OWEN Mr. Owen. Good afternoon. Vice Chairman Hice, Ranking Member Connolly, distinguished members of the subcommittee, thank you for the opportunity to appear today to discuss the role of U.S. Customs and Border Protection in combating the flow of dangerous illicit drugs into the United States specifically through international mail and express courier facilities. Before I provide my formal comments on the topic of today's hearing, I would first like to publicly recognize the men and women of U.S. Customs and Border Protection who responded to the Houston area in the aftermath of Hurricane Harvey to assist in the rescue and recovery efforts. Over 600 CBP air and marine interdiction agents, Border Patrol agents, and Customs and Border Protection officers with 50 vessels and 25 aircraft responded under very dangerous and very challenging conditions and rescued 1,362 people. And as Hurricane Irma takes aim at the U.S. mainland, CBP stands ready again to provide assistance and any necessary rescue and recovery efforts. As the unified border security agency of the United States, CBP plays a critical role in our nation's efforts to keep dangerous drugs from entering our communities. CBP's Office of Field Operations interdicts drugs and other dangerous items at our ports of entry, including multiple mail and express courier facilities, by leveraging advanced data, automated targeting, and intelligence-driven strategies, and using various types of detection technology as part of our multilayered risk-based approach to enhance the security of our borders. In fiscal year 2016, across the Nation, CBP seized more than 3.3 million pounds of narcotics. While most smuggling attempts occur at the Southwest border ports of entry, smuggling in the mail and express courier environments is a growing threat, especially the smuggling of illicit synthetic drugs such as fentanyl. Each day, over 1 million packages arrive into our international mail and express courier facilities. With the explosion of e-commerce, these volumes continue to grow. Upon arrival, every package is screened through radiation detection equipment for the presence of radioactive materials. And thanks to the support of Congress, CBP has made significant investments and improvements in our targeting, detection, and identification capabilities. These resources, along with enhanced information-sharing agreements, and law enforcement partnerships such as the one we have with the U.S. Postal Service are critical components in CBP's ability to detect and deter the entry of dangerous illicit drugs in international mail and express courier environments. Specific to the threat posed by fentanyl and other synthetic opioids, so far this fiscal year in the mail and express courier environments, CBP has made 242 seizures of fentanyl, totaling almost 300 pounds. In contrast, in the land environment, CBP has made 46 seizures totaling approximately 494 pounds. So while we encounter more fentanyl by weight in the land environment, we make more seizures in the mail and express consignment arenas. Furthermore, the average purity of fentanyl in the mail and express environment is over 90 percent, whereas the average purity of fentanyl seized in the land border environment is approximately 7 percent. Because synthetic opioids represent significant health and safety risks to our officers and our narcotics detection canines, CBP has deployed throughout our ports of entry a full suite of safety and personal protective equipment, as well as naloxone, a potentially lifesaving drug used to immediately counteract the effects of unintentional exposure. In conclusion, CBP will continue to work with our law enforcement partners, the international community, and our international partners to refine and enhance the effectiveness of our targeting, detection, and interdiction measures at all ports of entry, including international mail and express courier facilities. Vice Chairman Hice, Ranking Member Connolly, distinguished members of the subcommittee, thank you for the opportunity to testify today, and I look forward to your questions. [Prepared statement of Mr. Owen follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Hice. Thank you very much. Ms. Rectanus, you are recognized for five minutes. STATEMENT OF LORI RECTANUS Ms. Rectanus. Thank you. Good afternoon, Chairman Hice, Ranking Member Connolly, and members of the subcommittee. Thank you for the invitation to be here to discuss our report that is being released today. That report discussed the efforts that CBP and the Postal Service were taking to use electronic advanced data to enhance the security of international inbound mail. CBP and the Postal Service deserve credit for their efforts in this area, but we found they lacked the information to know whether their efforts are fully achieving the intended purposes. For the last few years at the New York International Service Center, CBP and the Postal Service have been testing the effectiveness of targeting items based on electronic advanced data. Through these pilots, CBP uses the data to identify about 15 pieces of mail each day that the Postal Service is supposed to set aside for inspection. Presenting these mail pieces has proved challenging primarily because the volume of mail received, how the items are shipped, and in some cases the accuracy of the data provided. The ISC receives thousands of large sacks of mail every day, and each sack could contain hundreds of pieces of mail. Employees must often manually sort through these sacks to find the individual items. Such a time- and labor-intensive understandably can miss things. Since the pilots began through the end of 2016, the Postal Service was able to provide between 58 and 82 percent of the requested items. Recently, the Postal Service has begun testing software and hardware to better locate requested items. Whether the pilots are meeting their goals, however, is unknown because the agencies have not developed metrics for what success looks like and what might be feasible. Such analysis is particularly critical given the pilots expansion, which will not only include additional locations but will involve greater volumes of mail and associated resources. On a broader scale, there remain unanswered questions about whether the benefits of using electronic advanced data for targeting outweigh the costs or the challenges associated with getting the data. Regarding benefits, officials report that using electronic advanced data could increase efficiency, that is, allow CBP to reduce the volume of mail to be inspected while achieving the same or better seizure rates. However, while CBP has collected data on seizure rates for the pilots, it doesn't have seizure rates for other targeting methods, so we don't know how targeting based on electronic advanced data compares to other targeting methods. Regarding costs, neither agency has fully assessed what this effort has or could cost. The Postal Service reported that it spent about $3 million on hardware and software upgrades and additional personnel to identify the small amount of targeted mail in the pilots. However, we don't know what additional costs might be borne by designated postal operators to collect or provide the information or what cost the Postal Service could incur when collecting data from these foreign operators. Moreover, the Postal Service has not estimated what expansion might cost. Given the Postal Service's financial condition, it would be good to have a better understanding of these costs before proceeding and determining the best way to move forward. A considerable challenge that needs to be addressed is that the Postal Service cannot mandate the provision of this data or guarantee its accuracy. We do recognize that in the last few years the Postal Service has worked to increase the amount of electronic advanced data, but it is still limited, and its accuracy is unknown. If the amount or quality of the data is limited, this could also impact the effectiveness targeting. In conclusion, the rapid growth in international commerce requires a thoughtful, well-reasoned approach that provides assurance not only of efficient resource use but also of enhanced mail security. Both CBP and the Postal Service agreed with our recommendations to assess the pilots' performance and evaluate the costs and benefits of using electronic advanced data. We look forward to working with them in their efforts. Chairman Hice and Ranking Member Connolly and members of the subcommittee, this concludes my statement. I would be pleased to answer any questions. [Prepared statement of Ms. Rectanus follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Hice. Thank you very much. Ms. Whitcomb, you are recognized for five minutes. STATEMENT OF TAMMY WHITCOMB Ms. Whitcomb. Thank you. Good afternoon, Chairman Hice, Ranking Member Connolly, and members of the subcommittee. The explosion of global e-commerce has led to rapid growth in inbound international mail parcels. Unfortunately, illicit drugs can hide within this traffic. There is a need for more effective ways to monitor inbound mail and find high-risk shipments. We believe data analytics can contribute to a solution. The Postal Service has been working with international postal operators to increase the amount of advanced electronic data it receives on parcels inbound to the United States. This data includes information on the sender, addressee, and contents of the mail piece. The Postal Service and U.S. Customs and Border Protection are currently conducting a pilot using this data, which allows CBP to target parcels more effectively for inspection. Last May, I testified before the Senate regarding the pilot and our work in this area. During that hearing, concerns were raised about the safety of postal employees who might be exposed to parcels containing dangerous opioids. In July, our office started to examine whether we could use advanced electronic data to determine the risks to postal employees from opioid parcels. Coincidentally, at the same time, we joined a narcotics trafficking investigation that appeared to involve a Postal Service employee. The case was initiated because CBP had seized a parcel containing the opioid fentanyl from an international shipper to a U.S. address. The investigation remains ongoing. However, this is the first investigation where we suspect that a Postal Service employee facilitated the illegal distribution of fentanyl. Using evidence from this investigation, we searched the advanced electronic data for more parcels sent from the same international address. We found more than 450 additional parcels sent between February and June of this year. The parcels were destined for locations nationwide, and other indicators suggested that many were suspicious. We took the analysis a step further to see whether the U.S. addresses that received these suspect parcels received other international parcels, and we identified an additional international shipper that sent parcels to some of the same addresses. When we searched the data for the second shipper, we found more than 2,400 additional parcels shipped between February and June of 2017. When we asked CBP, they confirmed they had seized a parcel containing fentanyl from this second shipper earlier this year. It appeared to us that the second shipper likely shared some customers with the first shipper, and in fact, one U.S. recipient received a total of 23 parcels from the two shippers. Using data analytics, we were able to turn shipping data from one fentanyl parcel into information about two suspect shippers and more than 2,800 suspicious parcels. While our analysis is still ongoing and providing new insights daily, a number of opportunities are already clear. Analyzing advanced electronic data, in combination with other postal databases, could shine a spotlight on international drug trafficking through the mail and facilitate prevention efforts in the originating countries. Additionally, in many instances, parcels from suspect shippers can be identified while they are still in transit between countries, which should help ensure that they are seized at our border. And for those parcels that may get into the domestic mail stream, analytics will help law enforcement track down the individuals who are trafficking or receiving these dangerous opioids. All of these opportunities require resources and strong collaboration between Federal agencies. We have already met with representatives from CBP, the Drug Enforcement Administration, the Department of Homeland Security Office of Inspector General, the Postal Inspection Service, and the Postal Service to share these discoveries and to discuss how to work together in the future using analytics. We believe this type of analysis is an exciting breakthrough for investigating trafficking through the mail, but there are a number of challenges ahead. First, more resources are needed to capitalize on these techniques, including more data experts and tools to generate leads and more assistance from law enforcement to follow them up. Second, although the amount of advanced electronic data is growing, it is still not yet available for all inbound parcels. Third, legal barriers to opening parcels may hinder investigations given the volume of suspect parcels. Finally, and most importantly, the successful use of analytics requires moving beyond traditional case-by-case, parcel-by-parcel investigative practices and instituting a high-level strategic collaborative approach to stop drug trafficking through the mail. If these challenges can be solved, data analytics promises to help government and law enforcement focus on the areas of greatest impact in order to prevent these dangerous opioids from entering our country in the future. Thank you for the opportunity to testify, and I'm happy to answer any questions. [Prepared statement of Ms. Whitcomb follows:] [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] Mr. Hice. Thank you very much, and we will now begin our time for members to ask questions. And I will begin by recognizing myself for five minutes. Ms. Whitcomb, how many pieces of inbound international mail did the Postal Service receive last year? Ms. Whitcomb. I believe the number is about 275 million parcels received via inbound international mail. Mr. Hice. Do you have any tracking information as to which countries those come from? Ms. Whitcomb. I think the Postal Service does. I don't know if Mr. Cottrell may have some better information on that. I don't personally have that with me today. Mr. Hice. Okay. Mr. Cottrell, do you keep track of where those come from? Mr. Cottrell. The Postal Service does, sir. That's not my arena, but we certainly can provide that information for you afterwards. Mr. Hice. Would they also keep track of any increase of mail coming from a country? Mr. Cottrell. Yes. Mr. Hice. All right. So, over the last five years if an increase is coming, say, from China, we would know about that? Okay. Mr. Owen. Yes, sir. If I could just add that, yes, the vast majority of the 275 million parcels that came in last year are coming from China, and that number continues to increase with e-commerce. Mr. Hice. Okay. Now, unlike--and I will go back, Ms. Whitcomb, to you here. Unlike the Postal Service competitors, the Postal Service, post office is not required to provide the electronic advanced data to CBP for targeting purposes. Now, my question is does this mean--how is this inbound mail sorted? Does it have to be done by hand? Ms. Whitcomb. How is it sorted? Mr. Hice. Well, yes. When you are looking for a potential target ---- Ms. Whitcomb. Right. Mr. Hice.--how is that done? Ms. Whitcomb. I believe that the Postal Service, as Ms. Rectanus mentioned, has to look through parcels and sacks and things like that when CBP requests a specific parcel to review. And then the Postal Service has to locate that parcel and then provide it to CBP. Mr. Hice. But that has to be done by hand? Ms. Whitcomb. I believe so. Is that correct? Mr. Owen. Yes, sir, if I may, yes, it is a very manual process. When all the international mail is received, the big sacks first come through all the radiation detection equipment, so that is the first step. After there are no radioactive materials in any of the parcels, then we work to identify those sacks in the mail that we want to see, and then those are brought to us. We then send them through the x-ray systems, we send them through the canines, we manually open them, so without advanced data to target ahead of time, it is a very manual, very labor-intensive process. Mr. Hice. So that is a daunting task. Mr. Owen. Yes, sir, it is. Mr. Hice. Is there any way that you can possibly under that scenario keep up with the requirement? Mr. Owen. The volumes are very challenging. We of course prioritize the incoming mail based on threat, and we devote our resources to those that represent the greatest threat, but the volume is overwhelming, yes, sir. Mr. Hice. Okay. So you are not able to keep up with what is required from CBP? I don't see any way. Mr. Owen. But if ---- Mr. Hice. What percentage are you behind? Mr. Owen. Oh, I don't think we have a number as to how much we look at because of the different layers that we have, so there is, again, advanced targeting when the data is available. Those shipments will be placed on hold and physically presented to us. And then again, we basically take sacks coming from a particular country of interest and start running all of those packages through x-rays, through the canines. We physically open them, so it is--again, it's a very manual process to keep up with the flows each day. Mr. Hice. All right. So you can't consistently present all the mail to CBP as required, correct? Mr. Owen. No. Mr. Hice. All right. So is there a memorandum of understanding of what is supposed to occur? Mr. Cottrell, this is probably best for you. Mr. Cottrell. Yes, Mr. Chairman. I do have my operations man Robert Raines. He can explain some of the inroads we've made in automating some of these processes to try to make it a little more manageable for customs. Mr. Hice. Okay. Mr. Raines. Yes, sir, so we've actually developed ---- Mr. Connolly. Mr. Chairman, Mr. Chairman? Mr. Hice. Yes. Mr. Connolly. Just one second. I have no objection at all to the testimony of the gentleman. I just would remind you he is not sworn in. Mr. Hice. He was ---- Mr. Cottrell. He was sworn. Mr. Hice. You were sworn in, yes. Mr. Connolly. You were? Mr. Raines. Yes. Mr. Hice. He was recognized before ---- Mr. Connolly. Before I got in? Okay. Thank you. Mr. Hice.--and was sworn in. Yes. Mr. Connolly. Excuse me. Mr. Hice. Thank you. Mr. Raines. Since May, we've developed technology to scan most of these parcels in large sacks, and we automatically run them on automation equipment to sort them for CBP, and they--we provide them with the single package they're looking for. Mr. Hice. Okay. So is there a memorandum of understanding that has been signed or will it be signed? Mr. Raines. Yes, sir. It was signed. Mr. Hice. Okay. Can you provide a copy of that to this committee? All right. Real quickly, let me go back to Mr. Cottrell here. I want to go back to where I was getting to a little earlier in terms of keeping track of countries and increased mail or whatever, packages coming from China. What percentage would you have any idea of incoming international mail comes from China? Mr. Cottrell. I'm going to deflect that to Mr. Raines, too. Mr. Raines. It's--a significant portion of mail does come from China. Mr. Hice. Like what does that mean, 10 percent, 20 percent, just a guess? Mr. Raines. No, it's larger than 20 percent. Mr. Hice. Has that number increased over the last five years? Mr. Raines. Yes. Mr. Hice. How much so? Mr. Raines. It increases double digits every year. Mr. Hice. Okay. Are there any other countries where we are seeing increased ---- Mr. Raines. We see increases from other countries, not as significant as China. Mr. Hice. Okay. So there is something that would potentially raise a red flag, what is going on, why are we receiving more from China or is that standard? Mr. Raines. I think it's a--there are a lot of low-value items that get shipped from China, so we see, from an e- commerce perspective, that that's a growing industry. Mr. Hice. Okay. My time is expired. I will recognize the ranking member, Mr. Connolly. Mr. Connolly. Thank you, Mr. Chairman. And I must say to the gentleman, I am very impressed with what you just said about China. I knew it was big; I didn't know it was that big. That is pretty impressive. Is it not true that at most of the fentanyl coming into the United States is coming from China? Mr. Owen. Yes, sir. I could take that. The fentanyl that's coming into the United States has two pathways. There is the products that are coming from China that typically arrive through the international mail and the express courier facilities, and then there is the fentanyl that's coming from Mexico that of course enters the Southwest border. Mr. Connolly. And what would be the ratio would you say, China versus Mexico as a source? Mr. Owen. I'm not sure we have a ratio. The purity of what is coming out of China is much, much more significant than the ---- Mr. Connolly. Right. Mr. Owen.--purity of what is coming out of Mexico. Mr. Connolly. And more lethal? Mr. Owen. And more lethal, yes, sir. Mr. Connolly. Yes. Okay. Thank you. While I got you, Mr. Owen, the statutory responsibility and authority of CBP with respect to interdiction of anything coming into the United States is contained in section 211 of title 6 of the U.S. code, is that correct? Mr. Owen. I assume so sir, yes. I'm not sure the code, but we do have the border search authority for everything that comes in and leaves the United States, yes, sir. Mr. Connolly. Right. It is not the Postal Service's responsibility; it is yours? Mr. Owen. It's our responsibility, yes, sir. Mr. Connolly. That is right. So help us understand how it works. When does the handoff go? How does that work? Once you have done whatever you do, when does it become the Postal Service's responsibility? Mr. Owen. Once we clear the parcels, then it turns--becomes domestic and it's turned over to the Postal Service, as with all cargo. So all cargo, including the mail and parcels arrive from foreign, they're presented to CBP for inspection. After we inspect and release that cargo, it then gets turned over to the carrier, in this case the Postal Service, to take it from there. Mr. Connolly. And to understand how we do it right now, we have got five centers that receive mail from overseas? Mr. Owen. We actually have nine international mail facilities. Mr. Connolly. Nine. Mr. Owen. We call them something different, but yes ---- Mr. Connolly. Okay. Mr. Owen.--there's nine facilities. Mr. Connolly. And the volume is roughly about a million a day? Mr. Owen. About a million a day ---- Mr. Connolly. A million a day. That is ---- Mr. Owen.--between mail and express. Mr. Connolly. Right. Mr. Owen. Yes. Mr. Connolly. Packages is a subset but a big part of the subset, as Ms. Whitcomb points out. Mr. Owen. Well, the mail in the Postal Service and the express in the express courier facilities, the DHL, FedEx, UPS. Mr. Connolly. All right. So you got these nine centers, but you're not laboriously looking at every single piece at every single center, right? Mr. Owen. No. Mr. Connolly. Right. Mr. Owen. No, we are not. Mr. Connolly. How does it work? Mr. Owen. The way it works is, again, we perform a risk assessment based on what's coming in, so if we have advanced data, that data is run through our automated targeting system, and it will bounce against different criteria that we have as to help us identify those packages that are higher risk. If those are high risk, we place them on hold, and whether it's the Postal Service or the express consignment company and that environment would present those packages to us. Outside of the advanced data, the cargo from the mail that does not currently have the data, again, it's a manual process that is screened for radiation, put on x-ray conveyor belts. We open things. The canines will run it, that manual process. Mr. Connolly. Right. Now, and I am not making a judgment. Based on what we've heard in the testimony, Ms. Whitcomb comes along and says we got this new technique, analytics, that actually is more efficient than the current system and gives us a higher rate of probability of catching fentanyl, which, after all, we all want done. Is that correct, Ms. Whitcomb? Have I characterized part of what the conclusion of your testimony would be? Ms. Whitcomb. I would conclude that we believe that the analytics that we did identified some ---- Mr. Connolly. Right. Ms. Whitcomb.--additional process. Mr. Connolly. But that's a technique not being used by CBP across ---- Ms. Whitcomb. I'd--we are not the OIG that does oversight for CBP, so I'm not sure exactly how they do their ---- Mr. Connolly. Mr. Owen? Mr. Owen. Yes, we do that type of targeting, that type of post-seizure analysis out at our national targeting center out near Dulles Airport. We will take the variables from one specific seizure and make connections to identify other high- risk shipments and then take those appropriate actions. Mr. Connolly. Right. Mr. Owen. So whether we call it data analytics or post- seizure analysis ---- Mr. Connolly. Right. Mr. Owen.--it's work that we've been doing for some time within U.S. Customs and Border Protection ---- Mr. Connolly. All right. But Ms. Whitcomb has testified that they did something you didn't catch. Mr. Owen. Based on the seizure that they worked, their review did that, yes. Mr. Connolly. Right. And, I mean, it was fairly impressive data if it at all--again, I'm not trying to say yours is--I'm trying to say, can we improve our detection? And it sounds like what Ms. Whitcomb described, we are on to something. We can make ourselves more efficient and make it may be less labor- intensive, while having a better payoff in catching the fentanyl coming into the country. Would you agree with that? Mr. Owen. I would agree that based on post-seizure work, making connections can help us be more effective, and that is work that we are currently doing out at the national targeting center, that we been doing for many, many years. We'd welcome a visit from you, sir, or from any of the members here so we can really get into the weeds and show you the great analytical work, the counter-network work that we're doing out there. Mr. Connolly. Where is this? Mr. Owen. It's out near Dulles Airport, sir ---- Mr. Connolly. Oh ---- Mr. Owen.--so you're back there ---- Mr. Connolly.--it would be a welcome thing to have CBP ---- Mr. Owen. Yes. Mr. Connolly.--meet with me a Dulles Airport. We are not going there. You are now testifying before Congress. Mr. Owen. Yes, sir. Mr. Connolly. We will go where we want to go. Mr. Owen. Yes, sir. Mr. Connolly. But I won't go there. Okay. I think my time is up. [Laughter.] Mr. Connolly. And you are very lucky, Mr. Owen. [Laughter.] Mr. Hice. I thank the gentleman. The gentleman from Iowa, Mr. Blum, is recognized for five minutes. Mr. Blum. Thank you, Mr. Chairman. And thank you to the panelists for being here today. I appreciate your insights. Mr. Owen, I believe you said--I wrote down here you said this is a very manual process. You also said the backlog continues to grow. How much of the process--I am from the private sector, so I am interested in this. How much of the process is manual today and how much is automated, whether through analytics, technology? What are the percentages today? Mr. Owen. Well, the percentages, if you look at last year's data--so we received 275 million parcels in the mail. We received another 98 million through the express courier facilities. The 98 million we currently receive the advanced information on, okay, so all of that is done through advanced targeting. We have the systems controls to present the shipments that we've identified as high risk to us. Within the 275 million that we've been working with the Postal Service on where we had very little advanced data a year ago, we now have advanced data coming to us from 18 countries and in particular from China, which is helping us to reduce from that manual process to a more targeted process based on the presence of that advanced data that we can analyze, place holds on the shipment of concern. Mr. Blum. That is the analytics portion of this, correct? Mr. Owen. Yes. So the pendulum is definitely shifting from where we had a much more of a manual process before we received advanced data to less of a manual process as we receive data now from 18 countries and growing. Mr. Blum. Of the packages that are targeted, what percentage--does every single one of those require manual intervention? Mr. Owen. Basically, yes. Every one ---- Mr. Blum. Every single one does? Mr. Owen.--that is targeted has to be open and physically inspected to determine what's inside. The typical seizure that we see in these parcels in terms of fentanyl and opioids is a baggie of 200 to 500 grams of white powder, so we're talking very small seizures, less than half-a-pound, generally manifested as something lawful and legitimate, aspirin, or acetaminophen. We have to take the substances from those baggies, those white powders, do some field testing to first make an additional identification. Then, it needs to go to a more structured laboratory within CBP or the DEA to make that final determination as to what that white powder is. It can be a very time-consuming process for each one of these half-a- pound shipments that were we're seizing in the mail facilities. Mr. Blum. So we want to obviously intercede in these illicit drug shipments. What happens, though, when we do find illicit drugs? Are we going back to the country of origin? Are we trying to find and prosecute the people? Or is there so much of this that that can't be done? Mr. Owen. When we will make the introductions, the first effort that we take is with our criminal investigators, with Homeland Security investigations, as well as with the postal inspectors. We will then try to process that seizure where we can result in an arrest of who was bringing that cargo into the country. With that as well, we also take the specifics from the seizure and it goes into the analytical work that we've been speaking of with the IG here as--to help identify further targets down ---- Mr. Blum. You have this funnel of packages, and you winnow it down by using analytics? Mr. Owen. Yes. Mr. Blum. Okay, now, to that portion of the funnel, can we use technology so maybe every package doesn't need to be hand- opened? Mr. Owen. You know, that's ---- Mr. Blum. I mean, is that in the future or is that now that we could be doing that? Mr. Owen. That is the future. There--you know, the ideal end-state for us is to have a technology that can look inside the package without having to open it and identify if there's a synthetic item in there, a concern to that part. There are several manufacturers that are working on that type of technology, so if we can have that technology that is automatic that will give us an alert that we've got an issue of concern within this package, that will be really a game-changer in this space that we struggle with. Mr. Blum. And that is being developed currently? Mr. Owen. Yes, there are several manufacturers that are working towards that end with ---- Mr. Blum. That would be a game-changer, would it not? Mr. Owen. It would be a game-changer, yes, sir. Mr. Blum. Last question, and if you already answered it, I apologize. The only responsibility of the United States postal system is to turn over, correct, or to present international packages to CBP, correct? That has not been done to the extent it is supposed to per policy? Am I correct in that statement? I believe I am correct. I just want to know why. Mr. Thome. That is not a policy, sir. It's our policy when CBP asks for packages for presentation, we present it to them. We've gotten much better, as we spoke before. When it was a manual process, we had a little more difficulty in finding the packages. But since we've automated that process, we've gotten much better at presenting CBP the items that they're asking for. And we continue to work and apply extra resources and automation to make that better. Mr. Blum. And I've got 13 seconds left, and I just want to say that the United States Postal Service and CBP, I think you both do amazing jobs. And I have toured many of the facilities, and hats off to you. Keep up the good work. And I yield back the time I do not have. Mr. Hice. I thank the gentleman. The chair now recognizes the gentlewoman from D.C., Ms. Norton. Ms. Norton. Thank you, Mr. Chairman, and I thank you for this timely hearing. I want to echo the words of my colleague about the work that the Postal Service is doing and the improvements you have made. I am interested in the most effective way of capturing illegal substances. I am concerned that we use 21st-century technology. There was technology discussed I think by my colleague in his question as well. I am very bothered by the increase in overdose deaths from opioids. I mean, I saw the heroin epidemic, I saw the crack cocaine, and this notion of doubling deaths in a single year could not be more disturbing. Commissioner Owen, has there not been an increase in the amount of fentanyl seized in inbound international mail? Mr. Owen. Yes, there has. We seized about 440 pounds last year, and we're over 800 pounds so far this fiscal year. Ms. Norton. So that is twice the seizures? Mr. Owen. Yes. Yes. Ms. Norton. And is that using technology? Mr. Owen. Part of that is record-keeping because before 2016 we did not have special categories for the fentanyl. Everything was considered an opioid, and the data would flow into the opioid category. Based on what we started to see in 2015 and '16, we broke out that. So we have better record- keeping, but ---- Ms. Norton. So you think it is record-keeping more than -- -- Mr. Owen. No, I think we can better capture what we are seizing in terms of the fentanyl and the synthetics, but I agree that there is much more coming in now than there had been several years prior. Ms. Norton. Now, you have also seen amounts, I understand-- I believe that was in your testimony--an amount seized at the Southwest border but less than the increases in seizures in the mail and express confinements. Is that the case? Mr. Owen. Yes, the seizures from the Southwest border are larger in quantity but fewer in number, whereas again the seizures in mail and express are much more great in number but very small quantities. Ms. Norton. But they are purer? Mr. Owen. They are more pure, yes, ma'am. Ms. Norton. And what accounts for that? Mr. Owen. The--because, again, these are chemical compounds and there is the ability to make them to different strengths if you will, so the products coming from China are much more pure, much more dangerous than the products coming in from Mexico right now. Ms. Norton. Could you tell me how many officers are assigned to examine mail at your facilities--at your international mail facilities? Mr. Owen. Yes, within the international mail facilities, we have just over 200 officers that work. Again, the mail facilities, of those nine, there are five that are significant in volumes. The other four are very, very small. Ms. Norton. Now, as I understand, officers are being rotated away from the customs districts to go to the Southwest border. Is that true? Mr. Owen. We have struggling--we are struggling with staffing issues in the Arizona ports of entry, as well as Southern California, so on a 90-day basis, we have 150 officers from around the country that are on temporary reassignment down there. Ms. Norton. So that such an officer cannot examine international mail because he has been sent to the Southwest border ---- Mr. Owen. Right, we have 20 field offices around the country, and we take two to three from each field office each 90-day period, so it's a small impact to the individual locations to support the activities on the Southwest border that are struggling with their staffing challenges. Ms. Norton. Now, again, I'm trying to find the best way to get a hold of this problem, and I know that the President's fiscal year 2018 budget requested $1.6 billion for construction of a border wall. Now, the President has not formally declared an emergency or asked Congress for emergency resources to deal with the fentanyl crisis, so I suppose this question is for Ms. Rectanus. Is that how you say your name? What effect will building a southern wall have on stopping fentanyl being shipped in the mail or through express carriers? Ms. Rectanus. That is not an issue that we have explored, so I would maybe refer that to my CBP colleague. GAO has not done any analysis of that. Ms. Norton. Well, I need to know, how does it get here, and if there was a wall, would that have any effect in keeping fentanyl from getting to the United States? Who can answer that question, please? Mr. Owen. As we take efforts to secure the Southwest border, that will help prevent the narcotics coming in from Mexico. And again, we do have Mexican fentanyl that's coming in as well. Ms. Norton. Yes, you do, and it is up to you to find the most effective way to stop what amounts to an opioid crisis and to suggest what is the most--we don't want to have hearings that see a doubling every single year. I haven't seen a crisis like this, and I have seen some terrible drug crises in my time in Congress. So I would like you to--I would like--and I don't know which of you is responsible to investigate what is the best way to deter fentanyl coming into the United States and to at least reduce the opioid deaths in our country, and I would ask you to report back to the chairman. Thank you, Mr. Chairman. Mr. Hice. I thank the gentlewoman. I now recognize the distinguished chairman of this committee, who is sitting way down there. He ought to be sitting here, but the gentleman from North Carolina, Mr. Meadows. Mr. Meadows. Mr. Chairman, I thank you for actually conducting the hearing and obviously taking the leadership role here as I was having to resolve something that actually Congressman Heath Shuler and I worked for a long time. He was a Member that held my seat, a Democrat, before I came, and we had been working on something for five years and it got resolved today, and so my apologies for not being here on time. But I thank you for your leadership and your help. So let me weigh in a little bit, I guess. You know, Mr. Owen, you know, I have visited your facility in Dulles, as you well know, and certainly have a lot of compliments on what you do and the work that you do. We have got a crisis on our hands, and we have got to figure a different way of dealing with this. So I guess my question to you is if there is an unlimited budget, which there is not, I mean, what would you do differently today? Mr. Owen. Well, if there was an unlimited budget ---- Mr. Meadows. Because--and let me tell you the reason why I ask that because one of the questions when I was sitting here listening to this you were saying, well, we're looking at that post-seizure, and we're looking, you know, back from a historical perspective. But you don't know what you haven't caught, so, I mean, you know, how can we do that on the front end instead of looking at it in retrospect? And all that is great. I think you have to look at it from a historical standpoint, but you don't know what you haven't caught, so what do we need to do in terms of giving you tools to do this better? Mr. Owen. Well, I think the most fundamental is to continue on the work that we're doing with the Postal Service to receive the advanced information. By having the information ahead of the shipments' arrival, we can do much greater targeting ---- Mr. Meadows. And what advanced information are you talking about? Mr. Owen. The advanced information as to the shipper of the goods, the recipient of the goods, the description. There's different data sets that we receive ---- Mr. Meadows. And why would you not have that? We currently don't have that with many of the countries from the Postal Service because of the international agreements as to the way the data is governed. And the Postal Service and the State Department could speak to that. Mr. Meadows. Mr. Cottrell, I mean, why would they not have that? Mr. Cottrell. Well, we've made tremendous ---- Mr. Meadows. I mean, if I ship on anything else, you got to have a sender and a receiver, so why would they not have that with you? Mr. Cottrell. The Postal Service is a leading proponent to get more AED, Mr. Chairman, but we do--are faced with certain constraints, as the State Department spoke to earlier. We don't control what foreign posts mail into this country, so we have taken great steps. The 18 to 20 large ---- Mr. Meadows. So you are saying it is the State Department's problem? I want to make sure I am clear. We got all the experts up there. I'm going to find out whose problem it is. Mr. Owen says it is not his. He says it is somewhere else, so whose problem is it? Mr. Cottrell. I think it is a combination, sir. It's us working with the foreign post to ---- Mr. Meadows. The buck stops somewhere. Who does it stop with? The State Department? Mr. Cottrell. I'll let you answer, Mr. Thome, if you want. Mr. Meadows. No, hold on. Let me make sure. Mr. Cottrell. Sure. Mr. Meadows. You are under oath. Is it your fault or is it someone else's fault? Mr. Cottrell. I don't know that it's anyone's fault, sir. It's treaties that are in place that the United States has entered into agreements. Mr. Meadows. All right. So go ahead and weigh in at the State Department. Mr. Thome. Thank you ---- Mr. Meadows. Because I am having a hard time explaining to my constituents back home when we have a fentanyl problem why the State Department wouldn't look at this a little differently. So we have got a treaty that is a problem? Mr. Thome. I would echo a little bit what my Postal Service colleague said. It's not really that it's anyone's ---- Mr. Meadows. It didn't work real well for your postal colleague, so I don't know that I would echo it. Mr. Thome. It's ---- Mr. Meadows. So go ahead. Mr. Thome. It's not really the fault of any one on this panel or any of the Federal agencies ---- Mr. Meadows. Well ---- Mr. Thome.--that are working this ---- Mr. Meadows. Well, then tell me whose fault it is because we will get them in here and make sure that they are here because I think that we have bipartisan interest on this particular subject. So whose fault is it? Mr. Thome. Well, the issue is that for the U.S. Postal Service, according to our treaty obligations, they must accept mail from foreign postal services. So unlike the express service as a ---- Mr. Meadows. So we need to un-ratify the treaty? Mr. Thome. No, it's not as much a question of the treaty that causes us the problem. It's the question of the capacity of the foreign posts to provide the data. Now, as I said in my testimony ---- Mr. Meadows. Well, we don't have to receive that. I mean, I have looked at it. I mean, it becomes a decision by the State Department on what qualifies and what doesn't. Is that not correct? Mr. Thome. Well, as things stand right now, we accept the mail from foreign postal services to facilitate the global exchange of mail. Mr. Meadows. And so as things stand right now, it is not working. Are you required to do that? Mr. Thome. As things stand right now in terms of the broad mass of legitimate commerce, it is indeed working quite well and expanding. We do need to focus on ---- Mr. Meadows. So you are saying a little bit of drugs along with the regular commerce is okay. Is that your sworn testimony here today? Mr. Thome. I am certainly not saying that, sir. Mr. Meadows. Well, that is what it sounded like. Mr. Thome. What I'm saying is we need to now focus on further convincing posts which are--and again, the time has come ---- Mr. Meadows. So how do I do that? How does a Member of Congress--because, listen, this isn't my first rodeo on this issue, and I have got major issues with it both from a cost standpoint and now from an oversight standpoint. So how do we fix it? Because the Postal Service says it is not them. They indicate that it is a joint State Department/postal system issue. So I need to get to the bottom line. I mean, who do we need to--do we need to have Secretary Tillerson in here to figure out how to fix it? Mr. Thome. Well, we are working already toward fixing it, and we are working together to convince other Postal Services that it's in their best interest to provide this ---- Mr. Meadows. So how ---- Mr. Thome.--and we're succeeding. Mr. Meadows. And I appreciate the indulgence of the chair. Give me one last question. How are we encouraging other people to comply, other countries? How are we doing that? Mr. Thome. There's two main avenues through which we do it. One is that the U.S. Postal Service is increasingly entering into bilateral agreements. I can't speak to those agreements because they're ---- Mr. Meadows. Proprietary. Go ahead. Mr. Thome.--proprietary. And then the other avenue is the Universal Postal Union where we have been actively engaged in helping countries expand their ability to provide this data. Once upon a time, they were not interested in this, but that has changed. They see the business model ---- Mr. Meadows. Okay. So let me close because I am out of time. The message that you need to take back and I guess Mr. Cottrell and I see my friends at the postal system there behind you need to take back is the time for us kicking the can down the road is over, all right? And we are going to get to the bottom of it, and you need to take it to those entities and say that now it is raised to the level of attention that we have got to deal with it. And we are going to continue to bring you back until we fix it. You tell me what you need from a resource standpoint, but we are going to fix this problem or we are going to take more severe action. Does that make sense? Is that fair? So can both of you report back to this committee in 90 days with an action plan on how we are going to encourage those others to comply? All right. Thank you, Mr. Chairman. Mr. Hice. I thank the gentleman. And again, thank you for your leadership in this subcommittee and the full committee as a whole. The chair now recognizes the gentleman from Missouri, Mr. Clay, for five minutes. Mr. Clay. Thank you, Mr. Chairman. The STOP Act would require the Postal Service to collect and transmit the same kind of electronic data to customs as the express consignment carriers already provide to customs. GAO testified today that Customs and Border Patrol have not evaluated the effectiveness of using electronic advanced data. So the STOP Act is premature since it assumes the effectiveness of using the data before a thorough evaluation of its use has been performed. But I think there are other problems with the STOP Act as well. The STOP Act is based on a fundamental misunderstanding of the differences between the Postal Service and consignment carriers. Chief Cottrell, is it not true that, as the designated postal operator for the United States Postal Service is required by international treaty established by the Universal Postal Union to accept and deliver mail that is shipped to the U.S. from the nearly 200 member nations of the UPU ---- Mr. Cottrell. Yes, Congressman. Mr. Clay.--is that correct? Express consignment carriers like UPS and FedEx are under no such requirement. They can choose their customers and the packages that they are willing to deliver. Isn't that right? Mr. Cottrell. Yes, Congressman. Mr. Clay. Okay. Isn't it also true that UPS and FedEx can charge the delivery rates that they want to charge for shipping packages, but the Postal Service must abide by the international postal rates established by the UPU, is that right? Mr. Cottrell. That is correct, Congressman. Mr. Clay. In addition, unlike UPS and FedEx, the Postal Service does not decide whether or not to accept foreign packages from mail, and foreign postal operators are the ones who accept the packages that the Postal Service is obligated under international agreement to deliver in the U.S., is that correct? Mr. Cottrell. Yes, Congressman. Mr. Clay. While express consignment carriers can get the data from their customer at the time they accept a package from a foreign shipper, the Postal Service does not have the same ability to collect that information at the time a package is tendered. Isn't that right? Mr. Cottrell. Yes, Congressman. Mr. Clay. There is also a misunderstanding of the authorities and duties of customs and the Postal Service. Commissioner Owen, customs has the responsibility to, and I am quoting from a statute, ``protect against the entry of dangerous goods.'' Do I have that correct? Mr. Owen. Yes, sir. Mr. Clay. As a result, Customs and Border Patrol has a lot of authority to search for and seize international mail and packages. Isn't that correct? Mr. Owen. Yes, sir. Mr. Clay. For example, is Customs and Border Patrol required to obtain a warrant prior to inspecting mail or packages? Mr. Owen. No, we are not. We have border search authority that allows us to inspect anything crossing our borders. Mr. Clay. Thank you for that response. And, Chief Cottrell, under what circumstances may the Postal Service seize and open mail packages for inspection? Mr. Cottrell. We gain probable cause and we get a search warrant from a Federal judge. Mr. Clay. So you have to go through the due process of getting a search warrant? Mr. Cottrell. Yes, Congressman. Mr. Clay. Okay. And this is also different from what express consignment carriers can do, correct? Mr. Cottrell. Yes, Congressman. Mr. Clay. Don't they have the authority to inspect their customers' packages to determine whether the package contains what the customer says it does? Mr. Cottrell. They create their own policies, yes, sir. They can open their packages. Mr. Clay. And that is different from the Postal Service? Mr. Cottrell. It's different from mail, yes. Mr. Clay. Given that the Postal Service and express consignment carriers operate very differently, it does not make sense to impose burdensome and impractical mandates on the Postal Service in a misguided effort to seek parity between the Postal Service and private carriers. And so, Mr. Chairman, I think that the STOP Act may be premature, especially if we don't have all of the information we need to determine if we can--if the Postal Service can even do what we want them to do. And so I would ask that we move cautiously on any legislation that would impact the operation of our Postal Service. And with that, I yield back. Mr. Hice. I thank the gentleman. And the chair will recognize the gentlewoman from Michigan, Mrs. Lawrence, for five minutes. Mrs. Lawrence. Thank you, Mr. Chair, and my ranking member who is here, for this hearing. As we know, the opioid epidemic is one of the Nation's foremost health crises. And coming from Michigan in 2015, I am so passionate about this. There are 2,000--2,000--human beings in my State overdosed on opioids, and that is a 13 percent increase over the previous year. So one of the things I want to be clear about because my colleague seems to be pointing the finger at the Postal Service that compliance and a sense of urgency in addressing this issue is not where it should be. Ladies and gentlemen, this crisis has forced all of us in law enforcement and those of us who are in the State Department and customs to reevaluate, based on the increase in numbers we are seeing and the human part of this that has equated to overdose and unfortunately deaths in our country. Now, one of the things my colleague did a great job outlining, there is an international treaty. And what we all know as the 192-member countries called the Universal Postal Union, the UPU. And being a member of that is not something that the Postal Service unilaterally or independently decided to join. It is a requirement as a Federal agency to be in compliance. So one of the areas we need to look at because we do need to have focus on this is through the State Department. That is our treaties and responsibility and limitations that is required of us by the UPU. The Postal Service must comply to those regulations as a Federal agency. And while we are bipartisan in saying we must look at new processes and are we being efficient, without being in mind, I would like to ask a question of Mr. Owen. Can you comment, because we are using CBP's EDA. That is what we are using, right, to screen our parcels. Am I correct? Mr. Owen. The advanced ED ---- Mrs. Lawrence. EAD. Mr. Owen. EAD, the electronic ---- Mrs. Lawrence. You are using that right now. That is your process? Mr. Owen. Yes, we screen the advanced electronic information to identify those shipments ---- Mrs. Lawrence. Okay. Mr. Owen.--that are at greater risk, yes, ma'am. Mrs. Lawrence. Can you comment, is this the most efficient process? Has there been any recommendations--when is the last time you had an evaluation to see if we are using the best technology in comparison to other targeting techniques? Because, obviously, we can't keep using the same processes considering the impact and the vast seriousness of this issue. Mr. Owen. We are constantly refining our targeting systems with new information, new sources of information, different capabilities that are out there than what had been there several years ago. So our targeting has gotten much, much stronger over the last several years to identify those shipments, be it in mail or the land border or the seaports that pose the greater risk. So we continue to strengthen our targeting and analytical capabilities that we have so that our resources are being directed where they're most effective. Mrs. Lawrence. One of the things I want to say here at this hearing--and I am going to ask the same question of you Ms. Whitcomb--is that so often we will have the representatives of an organization come before us and paint us a picture that we are doing a great job with the resources we have, but after the hearing, we will hear a different story--if we had the ability to use new technology, if we had the funding--and that is something that I really want to push your agency to be honest with us. There has been a request for you to report back to this committee how can we be more efficient. So through the Postal Service, through the State Department, through the Inspection Service, be honest with us. This is not an attack of you as an organization. This is a bipartisan effort to attack this problem. And unless you are honest and provide us with the information, we cannot move forward. So I want to ask the same question of the Postal Service. What can we do? Are there new technologies? How can we use the resources that we are expecting in the Postal Service to address this issue? Ms. Whitcomb. Based on the work that we've done, we believe that data analytics are a really important part of a solution to this problem. The data, the advanced electronic data, you have heard from the panelists, that is growing. We're getting more and more of that data, and I know that CBP, the Inspection Service, and our office are looking at how we can use that data and how we can use analytics layered onto that data to identify these parcels before they ever get into the mail stream, even possibly before they ever leave the originating country. If we can do that, I think there are some real opportunities there to stop these really dangerous opioids from entering the country. So I think there's an opportunity to collaborate among the panelists that you see here and even others to work together on identifying the best way to use data analytics to address this problem. Mrs. Lawrence. My time is up, and I will yield back to the chair saying that I want us as a committee to direct a collaboration so that we can have all these parties, not individual silos. How can they collaborate because they can't exist alone so that we can move forward in Congress and supporting a collaborative effort to attack this issue. Thank you so much. Mr. Hice. I thank the gentlewoman. Just before we close, let me just ask a couple of just real quick questions. Mr. Cottrell, is the Postal Service working with the recommendations from the GAO? Mr. Cottrell. We were directed to work with customs to set up the metrics and evaluate the effectiveness of the AED in our investigative processes, so we will be working with Mr. Owen and his team. Mr. Hice. Specifically towards those recommendations? Mr. Cottrell. Yes. Mr. Hice. Okay. And, Ms. Rectanus, let me just real quickly, in your report you discussed two pilot programs at the New York International Service Center. In both those pilot programs USPS agreed to provide EAD to CBP for certain mail. One of those pilots--explain what percentage UPS successfully provided to the CBP for targeting? Ms. Rectanus. Sure. There are two pilots. The first pilot, we--when we looked at the presentation data, it did seem like Postal Service had gotten better over the period of time ultimately averaging about 80 percent ---- Mr. Hice. Okay. What was the other one? Ms. Rectanus.--of the packages presented. The other pilot, when we looked at the data monthly, it really varied, but they average about 58 percent over this period. Mr. Hice. Why the discrepancy? Ms. Rectanus. Excuse me? Mr. Hice. Why a discrepancy between the two? Ms. Rectanus. I think--well, part of it probably had to do with the type and the level of data that they were getting from the countries that were involved in those pilots, and I think partly also it was volume and it was the type of product I think that was involved that allowed the Postal Service to be able better to identify the particular packages. And again, they are only--they were only asking for 5 or 10 packages from each of those pilots, so it wasn't a huge number either. Mr. Hice. Okay. Now, in 2016, we all know the Postal Service reported like $5.6 billion loss, 10 consecutive years now with a loss. In light of this, just curiosity between the two of you, has USPS and CBP, have you considered the cost and the benefits, analysis of increased electronic data? Mr. Owen. No, that again is one of the recommendations that both agencies agreed with that we need to do more of that to take--make sure we're being effective with the data that is being provided. So we both did concur with those recommendations from GAO. Mr. Hice. Okay. So that discussion is going to be underway? Mr. Owen. Yes, sir. Mr. Hice. Okay. Mr. Owen. Yes, sir. Mr. Hice. All right. With that, I am going to yield the final two minutes to the gentleman from North Carolina. Mr. Meadows. Thank you, Mr. Chairman. So let me do two clarify things. Is it Mr. Thome? Is that-- what? Mr. Thome. Thome. Mr. Meadows. Thome. All right. Mr. Thome, the next Universal Postal Union meeting is where and when? Mr. Thome. The next UPU Congress is an extraordinary Congress in Ethiopia in 2018. Mr. Meadows. All right. So would it not be appropriate to get a couple of members of this committee to go with you and accompany you to that particular meeting? Is that something that you can arrange? Mr. Thome. I certainly could add you to our delegation, and you'd be more than welcome. Mr. Meadows. All right. So if you would reach out to the committee there on doing that. Mr. Cottrell, is the postal system willing to provide all their postal data so that we can do--retroactively look at all these cases? And are you currently doing that? Mr. Cottrell. Yes, sir. The Postal Service currently provides over 90 percent AED for our outbound product. Mr. Meadows. All right. And so from GAO perspective, what more needs to be done there? Ms. Rectanus. As far as the cost and benefits and sort of looking at the pilots' performance, our focus was really given the Postal Service's financial situation and this small percentage of their revenue and volume that come from international mail, albeit growing. What we wanted was some kind of united conversation between the folks to say what is feasible? What do we think is really effective and what do we think is--sort of is the juice worth the squeeze? Given that--right now, the pilots have been very, very small, and there is a very small number of pieces of mail and packages that have been involved, so we would want them to identify what percentage of mail should the Postal Service be able to present to CBP, and if they aren't, then why not, and kind of get that figured out before we expand it fully and move on with getting more advanced data if we're not ready to use it yet. Mr. Meadows. So, Mr. Cottrell, what percentage is reasonable? Mr. Cottrell. I want to make sure I'm understanding your question. Mr. Meadows. Well, I mean, you just heard what she said. I mean, we've got small pilots. I mean, at what percentage of deliverables would be a reasonable percentage? Mr. Cottrell. We're providing everything we get, which, as of July, was about 40 percent, to customs, so it's up to us and customs to work together to identify as much as we can and then work to pull that out and get it in front of customs. Mr. Meadows. I think we are talking over each other. I will follow up. I am assuming that I see a very receptive nod from behind you, and so we will work through that together. Here is the interesting thing, and I will close with this. We need better collaboration between the entities. To suggest that one group is responsible and another one is not is like telling TSA and all the international travel we have coming in here that it is okay to let a terrorist come in from some foreign country just because we have an agreement with them, Mr. Thome. So what we have to do is--this is taking people's lives. Let's treat it that way and start to work with better collaboration. Does that make sense for all of you to do that? Are you committed to do that? Anyone not? Let the record reflect everybody answered in the affirmative. I will yield back. Thank you. Mr. Hice. I thank the gentleman. I would like to again extend a thank you to all our witnesses for taking time to appear here before this subcommittee today and particularly for your patience during the voting series. The hearing record will remain open for two weeks for any member to submit a written opening statement or questions for the record. If there is no further business, without objection, the subcommittee stands adjourned. [Whereupon, at 4:39 p.m., the subcommittee was adjourned.] [all]